ISLAMABAD - The Ministry of Water and Power on Friday claimed that due to their efforts to enhance the overall power system not only circular debt has been reduced to Rs. 244 billion but loadshedding has also been minimised in most of the power distribution companies of the country.

The circular debt which was piling up Rs.12-13 billion per month, has not only been stopped but due to our efforts to improve the recoveries, the circular debt in last two months has been brought to Rs. 244 billion from Rs300 billion, and in coming months it would be brought further down with the improvements in recoveries and overall system, said spokesman, Ministry of Water and Power, while talking to The Nation.

It is pertinent to mention that two months ago, reportedly, the total circular debt amount was around Rs 500 billion. Out of which carry forward recoveries of previous year 2012-13 were Rs 81 billion, non-recovery of Discos Rs 79 billion, non-payment of KESC is Rs 11 billion, subsidies due from government are Rs 48 billion, mark-up liability is Rs 44 billion and others are Rs 7 billion. After the reduction of around Rs30 billion, total circular debt has now been reduced to Rs 470 billion.

Spokesman further said that due to intime recoveries all the generation companies have been paid on time, which has helped in reducing load shedding also.

We are having almost zeroed or minimum loadshedding in most parts of the country, except areas where system is over loaded, spokesman said.

We are having zero load shedding in IESCO, LESCO, Peshawar and Multan, however some areas of MEPCO and PESCO are still facing outages and it is due to system constraints, he said, adding, for example if one feeder has a capacity of 10,000 consumers but is supplying to 28,000 consumers, power supply has to be disconnected otherwise system would collapse.

Explaining his ministry's position on issues of the excess billing to consumers during last couple of months, he said that it was due to withdrawal of certain amount of subsidy from government.

"Ministry of Water and Power has nothing to do with the bills, Nepra determined the tariff while Ministry of Finance decides to grant or withdraw subsidies; Ministry of Finance has withdrawn some subsidy and the availability of electricity is more as compare to last year, that's why consumers think they have received more bills as compare to last year", spokesman explained.